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Lonmin - Full Year Production Report

Release Date: 25/10/2006 08:00
Code(s): LON
Wrap Text

Lonmin - Full Year Production Report Lonmin Plc (Incorporated in England and Wales) (Registered in the Republic of South Africa under registration number 1969/000015/10) JSE code: LON Issuer Code:LOLMI ISIN: GB0031192486 ("Lonmin") Full Year Production Report 25 October 2006 Lonmin today announces its production report for the twelve months to 30 September 2006 (unaudited). Brad Mills, Chief Executive Officer said: "Our mining operations had a record year producing 1,017,137 Platinum ounces in concentrate ahead of our 1 million ounce target. Marikana continued to ramp up underground production with underground tonnes mined up 8.1% on last year. As planned we continued to scale back our opencast operations with Marikana"s opencast tonnes mined down 23.4%. Limpopo delivered 50,404 Platinum ounces in concentrate for the year in line with our forecasts. In the last quarter of the year we achieved stable Smelter operations and the Process Division recovered quickly from September"s fire in the Precious Metal Refinery. We recorded total sales for the year of 952,682 ounces of Platinum and 1,817,624 ounces of total Platinum Group Metals up 4.4% and 7.4% respectively on last year. During the year we sold approximately 20% of our full year"s PGM sales as concentrate due to our Smelter rebuild programme and other processing outage issues. These sales carry a lower margin than refined metal sales. Cost pressures increased in the second half and we now believe that full year Marikana C1 costs of own production net of by-product credits will be around R2,400 to R2,450 per PGM ounce sold." Mining 12 months 12 months to to 30 30 September September 2006 2005
Tonnes Marikana Underground 000 11,942 11,047 mined Opencast 000 2,032 2,653 Total 000 13,974 13,700
Limpopo Underground 000 858 212 Opencast 000 14 0 Total 000 872 212 Lonmin Underground 000 12,800 11,259
Platinum Opencast 000 2,046 2,653 Total 000 14,846 13,912 Tonnes Marikana Underground 000 11,959 11,102 milled* Opencast 000 2,308 2,444 Total 000 14,267 13,546 Limpopo Underground 000 887 214
Opencast 000 14 0 Total 000 901 214 Lonmin Underground 000 12,846 11,316 Platinum
Opencast 000 2,322 2,444 Total 000 15,168 13,760 *Excluding slag 12 months 12 months to
to 30 30 September September 2006 2005 Metals in Marikana Platinum oz 966,733 930,373 concentrate Palladium oz 433,699 402,748 Rhodium oz 137,220 129,872 Total oz 1,861,179 1,766,908
PGMs Limpopo Platinum oz 50,404 11,567 Palladium oz 38,170 9,217 Rhodium oz 7,845 1,305
Total oz 113,364 25,672 PGMs Lonmin Platinum oz 1,017,137 941,940 Platinum
Palladium oz 471,869 411,965 Rhodium oz 145,065 131,177 Total oz 1,974,543 1,792,580 PGMs
Metals in concentrate are contained ounces in concentrate produced during the period by the mining operations. Metallurgy 12 months 12 months to
to 30 30 September September 2006 2005 Production Marikana Platinum oz 739,277 830,911 refined Palladium oz 323,275 360,753 Rhodium oz 87,674 93,445 Total oz 1,352,037 1,510,553
PGMs Marikana Platinum oz 158,114 73,985 Concentrate and other
Palladium oz 77,630 38,346 Rhodium oz 37,855 24,491 Total oz 341,643 167,956 PGMs
Limpopo Platinum oz 50,404 11,524 concentrate Palladium oz 38,170 9,043 Rhodium oz 7,845 1,320
Total oz 113,364 25,741 PGMs Lonmin Platinum oz 947,795 916,420 Platinum
Palladium oz 439,075 408,142 Rhodium oz 133,374 119,256 Total oz 1,807,044 1,704,250 PGMs
Lonmin Group Metal Sales 12 months 12 months to to 30 30 September September
2006 2005 Sales Lonmin Platinum oz 952,682 912,844 Platinum Palladium oz 442,630 402,425
Rhodium oz 135,449 117,944 Total oz 1,817,624 1,692,517 PGMs 12 months 12 months to
to 30 30 September September 2006 2005 Prices Average Platinum R/oz 7,283 5,366 $/oz 1,084 856 Palladium R/oz 1,999 1,184 $/oz 299 189 Rhodium R/oz 26,106 10,494
$/oz 3,897 1,661 Basket price of PGMs $/kg 30,916 19,979 & base metals Exchange Average rate for $/GBP 1.81 1.85 Rates period R/$ 6.63 6.28 Closing $/GBP 1.87 1.75 rate
R/$ 7.77 6.36 Lonmin"s Final Results will be announced on 15 November 2006 and first quarter production report on 25 January 2007. Enquiries: Alex Shorland-Ball +44 (0) 20 7201 6060 Vice President, Investor Relations & Communications Date: 25/10/2006 08:00:17 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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